Bulletin: Budget Deficits And Higher Debt Do Not Threaten 'AAA' Rating On Australia May 09
- ID: 2092363
- May 2009
- Region: Australia
- Standard & Poors
MELBOURNE (Standard & Poor's) May 12, 2009-- Standard & Poor's Ratings Services said that tonight's Commonwealth Budget is consistent with its 'AAA' long-term foreign and local currency sovereign credit ratings on Australia. The 'AAA' rating is the highest rating assigned by Standard & Poor's. The government is forecasting fiscal deficits on a cash basis of 2.7% of GDP in the fiscal year ending June 30, 2009, 4.9% in 2010 and 4.7% in 2011-due to a cyclical weakening in revenue and counter-cyclical stimulus measures. It also estimates the additional borrowings required to fund the deficits to be A$110.6 billion by 2011. "We believe the deficits and associated borrowings do not alter the sound profile of the country's public finances. This is...
Companies mentioned in this report are: Australia (Commonwealth of) (Unsolicited Ratings)
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.